LANSING, MI (AP)-- Michigan plans to enlist private investors to finance a public social program, becoming the latest state government to try an experimental "pay-for-success" approach in tackling persistent problems such as homelessness or criminal recidivism.
Michigan is the seventh state chosen through a national competition to receive technical assistance from Harvard University for a social impact bond.
Also known as pay-for-success contracts, social impact bonds let private investors put up money for a program with a specific goal.
If the goal is achieved, the government pays back the investors, with a profit. If not, the government pays nothing.
Governor Rick Snyder's administration is issuing a request for information to identify potential projects. Possibilities include infant mortality, early childhood development, homelessness and recidivism.
